Manufacturers Restore Orders to China After Struggles Elsewhere

Some companies that shifted production out of China to avoid higher US tariffs are restoring orders to Chinese suppliers after struggling to match the country's manufacturing ecosystem. Dawang Metals in Dandong regained a US agricultural-machinery customer that faced problems producing in India. Jin Chaofeng closed the Ho Chi Minh City workshop he opened in 2024 and returned outdoor furniture production to China, saying that once equipment shortages including screws and molds were factored in, overall costs were not much different. Stanislaw Krykun said Chinese plants are the most stable in any crisis after plastic input costs spiked 15% in April from oil prices; DST Pack keeps 80% of sourcing in Shenzhen while US and Europe options cost far more. Guan Baokui described electricity supply in Vietnam and Indonesia as unstable and not continuous. Target moved some orders back to Chinese suppliers and Shein is scaling back some Vietnam operations, according to people familiar; both firms did not immediately respond to requests for comment. China-plus-one investment continues in India, Indonesia and Vietnam. Firms are watching the expected Trump-Xi meeting this month. Heather Kuang said China's supply-chain advantage is still too great to replicate and that exporters gave up expecting much from Trump long ago. Summer Hu said competition is too intense and her firm is not optimistic. Yu Yangxian keeps roughly one-eighth of capacity in Vietnam as a hedge. Contested: none found in the record.